January 10, 2025

Why TV and smart phone sales are both bad _ Korean panel factory is difficult

TV and smartphone sales are bleak, and with the strong competition of Chinese rivals, Korean panel makers have been in a difficult situation.

BusinessKorea reported on the 9th that Samsung Dong, president of Samsung Display, admitted to the chairman of the Korea Display Industry Association (Korea Display Industry AssociaTIon) that the current market conditions are really worse than the (2017) year of imagination, China's production capacity has increased significantly, the Korean panel The industry no longer has an advantage in terms of scale.

As the TV market enters the off-season and the large-size panel quotations for TVs decline, while smartphone sales are weak and the demand for small-sized panels is also affected, panel makers are facing a double blow. According to a report released by the market research organization WitsView on March 7, LCD panel prices have generally weakened this year. The 65-inch UHD TV panel offer came at $354 after the end of last year, and it was all from 343 US dollars in January and 331 US dollars in February. , slipped to $315 at the beginning of this (3) month.

This is quite unfavorable for the largest LG Display in the large-size panel market. The large-size LCD TV is considered to be the LG Dislay Golden Chicken. However, after the Chinese manufacturers entered the market, the doubts about the decline in the offer price are getting worse and worse. LG Display has recently tightened its belts to minimize cost.

Why TV and smart phone sales are both bad _ Korean panel factory is difficult

At the same time, Samsung Display originally expected that after winning the exclusive contract for the iPhone X, the panel business will flourish, and I did not expect the iX demand to be unexpectedly weak, which is counterproductive.

BusinessKorea quoted industry news on February 2, Samsung Display Panel, which supplies OLED for iPhone X, has informed its partners to reduce the production of iPhone X components on January 19. It is estimated that Apple will only purchase 2,000 from the company in the first quarter of this year. Ten thousand panels, instead of the original 40 million, and the purchase volume will be cut in half again in Q2.

Industry insiders pointed out that this implies that Apple intends to discontinue the iPhone X. Since Samsung Display is the only manufacturer to supply OLED panels for the iPhone X, the number of orders it receives can reflect the production of the iPhone X.

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